Janesville School District Employee Pleads Guilty to Embezzling Almost $300,000

Jessica Warner-Reed of Janesville pled guilty in Rock County Circuit Court to seven felony charges including one count of Misconduct in Public Office, one count of Theft in a Business Setting over $10,000, four counts of Forgery, and one count of False Income Tax Return, according to a release from the Department of Revenue.

Criminal charges were filed on January 25, and bail was set at $5,000 cash bond for all charges. Warner-Reed is being prosecuted by the Rock County District Attorney's office following an investigation by the Janesville Police Department and the Wisconsin Department of Revenue's Office of Criminal Investigation. 

She pled guilty on May 25, and Judge Michael Haakenson has scheduled sentencing for August 10.

According to the criminal complaint, during her employment with the Janesville School District, Warner-Reed was the banker for Craig High School. In this position, Warner-Reed was responsible for collecting money from advisors for various clubs, teams, groups and activities that occur at Craig High School, as well as depositing money in the bank/credit union. 

The criminal complaint states that between January 1, 2009, and June 30, 2015, Warner-Reed deposited $303,876.96 into her personal account. The complaint goes on to state that, according to the Department of Revenue analysis of banking records and investigative reports, Warner-Reed embezzled more than $282,889 in cash and checks after repaying the schools account $21,179. As required by federal law, all sources of gross income are required to be reported. The Wisconsin income taxes evaded from 2009-2014 is alleged to be $16,407.

Under Wisconsin law, filing a false or fraudulent tax return is a felony. Warner-Reed faces up to six years in prison and $10,000 in fines for the one count of False Income Tax Return. On all seven counts, Warner-Reed could faces up to more than 43 years in prison, as well as $85,000 in fines.